The Difference Between Banks And Credit Unions, Explained

Credit unions may not be as popular as big banks, but they're still a good place to put your money. Of course, there are pros and cons to both institutions, and this infographic lays out the major differences.

The biggest difference between a credit union and a bank is how they're owned and operated. Credit unions are not-for-profit organisations, while banks are owned by shareholders and are obviously out to make a buck. Consequently, credit unions can have lower rates and fees (although this isn't guaranteed).

When you use a credit union, you become a member and part owner. This basically means you get to vote on the Board of Directors. By contrast, bank members are really just customers.

This isn't to say you should absolutely switch to a credit union, of course. Banks have their advantages; for example, they're generally more convenient. It's a choice you have to make depending on your situation, but if you're curious about the basic differences, GoBankingRates lays them out simply in the below infographic. Check it out, then head to the link below for more information.

Was with a credit union as my first bank until I was 25yrs old. Then started getting slugged fee after fee after fee which was frustrating as a very low user of banks (never use ATM's and just Bpay bills). Called them to try and find a solution to the fees and was directed to sign up to a credit card and would have no more fees. Well that was just a lie, my fee's almost doubled! Changed to a 'Big 4' bank and haven't paid a cent in fee's for 10 years.

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